BIR extends deadline for biz declaration of losses

ORMOC CITY, Philippines — BIR Commissioner Kim Henares has finally heeded the requests of  Yolanda-affected businesses to grant them more time to file their declaration of losses.

Businesses in Yolanda-hit areas in Regions 6 (Western Visayas) and 8 (Eastern Visayas) were only given 45 days after November 8, 2013 to file their sworn declaration of  losses, but Henares extended this period up to March 31 this year.

Ormoc revenue district officer Eduardo Obero shared this information before an audience gathered for this year's annual tax campaign held at the Sabin Resort Hotel on Friday.

Obero said Henares issued Revenue Memorandum Circular No. 18-2014 last March 18, stating: "In the light of  overwhelming requests amidst the untold events brought about by super typhoon Yolanda," the filing of declaration of losses arising from casualty, theft, robbery or embezzlement "is hereby extended until March 31."

Henares, however, strictly qualified the availment of  the "extraordinary relief" saying it is "limited to losses sustained by taxpayers engaged in business in areas affected by typhoon Yolanda, whose books of accounts and relevant records were completely damaged/destroyed, where, as a result, data reconstruction could not be achieved."

Obero said the extension granted by the BIR chief is a big help to taxpayers who have lost their compilations of receipts and expense records.

Businesses are required to keep their income and expense records intact for the past three years, in case they are audited by BIR. He said that if they lost their records to Yolanda and have not filed a declaration of loss, they could run into trouble with the BIR.